The devastating Coldcard exploit has now surpassed the $100 million mark, with 1,596 Bitcoin stolen from users. Security researchers warn that a fourth wave of attacks could push total losses to $130 million, making this one of the most costly hardware wallet breaches in crypto history.

How the Coldcard Exploit Unfolded

The attack, which has been unfolding over recent weeks, targets Coldcard hardware wallets—devices widely regarded as among the most secure in the industry. The exploit has been executed in multiple waves, each draining additional funds from victims' wallets.

According to on-chain data, the attackers have already siphoned off 1,596 BTC, valued at over $100 million at current prices. The theft has been traced to a sophisticated vulnerability that allows remote access to private keys without physical tampering.

Wave 4 Threat Looms

Security analysts tracking the incident have identified patterns suggesting a fourth wave of attacks is imminent. If this wave materializes, cumulative losses could climb to $130 million, amplifying the impact on affected users and the broader crypto community.

Coldcard's parent company has released a statement urging users to move funds to new wallets with updated firmware and to be vigilant against phishing attempts. However, the root cause of the exploit remains under investigation.

Impact on Bitcoin Holders and Market Sentiment

The theft has shaken confidence in hardware wallets, long considered the gold standard for crypto security. Many users are now questioning the safety of their cold storage solutions, leading to a spike in support requests and forum discussions.

While the Bitcoin price has not shown immediate panic, the incident adds to a growing list of high-profile hacks that have eroded trust in the ecosystem. Some analysts believe that if losses reach $130 million, it could trigger a short-term sell-off as affected users liquidate assets to recover losses.

What Coldcard Users Should Do Now

If you are a Coldcard user, take these immediate steps to protect your funds:

  • Transfer funds to a new wallet generated with the latest firmware.
  • Update firmware to the newest version, which may include patches for the exploit.
  • Enable extra security layers such as passphrase protection and multi-signature setups.
  • Monitor your wallet for any unauthorized transactions and report suspicious activity to the company.

Security experts also recommend diversifying storage solutions—using multiple hardware wallets or a combination of hot and cold wallets—to mitigate single-point vulnerabilities.

Key Takeaways

The Coldcard exploit has crossed $100 million, with 1,596 Bitcoin stolen, and a fourth wave could push losses to $130 million. This incident underscores the importance of staying updated with security patches and adopting layered defense strategies. While the full extent of the vulnerability is not yet public, users are advised to act swiftly to secure their assets.